Why Your Startup Needs People Operations

Let's be honest - most startup founders don't dream about building HR systems when they're sketching out their vision on the whiteboard. They're focused on product breakthroughs, market opportunities, and growth trajectories. But the reality is even the most promising startups can stumble if they neglect their people strategy.

The Risks

Scaling a startup is exciting, but it comes with unique challenges, especially when managing your team. Founders often find themselves in a difficult position: you need robust people operations to support growth and ensure compliance, but you don’t need to bring on a full-time HR hire. This leaves many founders navigating a critical phase without the compliance and strategic expertise needed to thrive.

Without proper people ops support, startups can quickly face issues that undermine growth, create legal risks, and can trigger a negative feedback loop that impacts the entire business.

We see this as three common problems:

1. Reactive vs. Proactive: Without dedicated people ops expertise, founders end up fighting the everyday people ops fires instead of building systems to avoid the fires in the first place.
2. Compliance Blind Spots: As a founder, The "everyone figure it out as we go" approach becomes increasingly risky to navigate the complexities of payroll and federal, state, and local laws can be overwhelming, especially when onboarding new team members during critical growth phases.
3. Cultural Drift:  As your startup scales, preserving the company’s culture and values can become increasingly challenging. Each new hire has the potential to shift the dynamic and disrupt the core culture that made your business unique. To navigate this, it’s crucial to prioritize hiring for cultural fit—while maintaining the values your company was built on.

Enter Fractional People Operations

Think of fractional people operations as your startup's secret weapon for scaling smart. You get People Operations/HR expertise right-sized for your current stage, without the overhead of a full-time hire.

Recruitment and Hiring

People operations professionals can help startups attract and hire top talent. They can create job descriptions, compensation/benefit benchmarking, build interview guides, provide interview training to ensure you identify the right candidates for the job. They can also help startups build their employer brand and develop a recruitment strategy that aligns with the company's culture and values.

Onboarding and Training

Once new employees are hired, people operations can ensure they are effectively onboarded and trained. They can develop an onboarding program that helps new hires understand the company's culture, policies, and procedures. They can also provide training and development opportunities to help employees grow in their roles.

Performance Management

People operations can help startups manage employee performance effectively. They can develop performance metrics, provide feedback, and coach managers to help them improve team performance. They can also create a performance review process that is fair and consistent and aligns with the company's goals.

Culture Building and Employee Engagement

People operations can help startups build and maintain a positive company culture. They can develop programs and initiatives that promote employee engagement, such as team-building events, recognition programs, and wellness programs. They can also help founders ensure that their company's values and mission are reflected in everything the company does.

Compliance and Legal Considerations

Finally, people operations can ensure that startups are compliant with legal and regulatory requirements. Think of this as your startup's safety net: experts can develop policies and procedures that comply with labor laws, safety regulations, and other legal requirements. They can also help startups navigate complex legal issues such as employee benefits, worker's compensation, and discrimination claims.

When Should You Invest in People Ops?

The short answer? Earlier than you think. Here are the signs you need dedicated people ops support:

• You're planning add >25% headcount in the next 12 months
• You’re a remote company, hiring multi-state or global team members
• Managing HR tasks is eating up >20% of founders' or key leaders time
• You're seeing early signs of culture drift or engagement issues
• You're not confident about your compliance foundation

Remember: it's always cheaper to build these systems proactively than to fix people problems reactively.

At airCFO, we've helped startups build scalable people operations functions. We'd love to help you evaluate your current needs and chart the right path forward.

Want to explore how we can help you build a people ops engine that powers your growth? Let's talk about where you are today and where you want to go.

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